Find the simple interest of 2 years of Rs. 4,000 at the rate of `10%` per annum.

Options

A. Rs. 8
B. Rs. 80
C. Rs. 800
D. Rs. 1,600

Answer

To find the simple interest for 2 years on a principal amount of Rs. 4,000 at an interest rate of 10% per annum, we can use the formula for simple interest:

**Simple Interest (SI) = (Principal × Rate × Time) / 100**

**Step 1: Identify the values**
- Principal (P) = Rs. 4,000
- Rate (R) = 10%
- Time (T) = 2 years

**Step 2: Substitute the values into the formula**
SI = (4000 × 10 × 2) / 100

**Step 3: Calculate the multiplication in the numerator**
SI = (4000 × 10 × 2) = 80,000

**Step 4: Divide by 100**
SI = 80,000 / 100 = 800

**Final Answer:**
The simple interest for 2 years is Rs. 800.

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